Texas Instruments Inc is planning to buy Israeli company Libit Signal Processing Ltd for about $365m in cash, a move which will allow TI to deliver voice over IP (VOIP) traffic on cable modems. Leon Adams, DSP strategic marketing manager at TI, said that the acquisition would help TI address the burgeoning opportunity in broadband communications.
Libit, a privately held company that was started in 1994, makes chips for cable modems, set-top boxes and digital televisions. TI plans to combine Libit’s technology with its own programmable DSPs. TI has been steadily filling the gaps in its broadband communications portfolio, buying up Telogy Networks Inc to bolster its xDSL technology. TI says that with the Libit and Telogy input it will develop a reference design which will allow makers of cable modem equipment to get products to market quicker.
The merger is expected to be completed on July 1. The deal is subject to the approval of shareholders and the Israeli government. We don’t expect any problems with getting approval, Adams said.
